Markets Break S1 Short Term Support Level In A Big Way

DJIA -256.56, -2.04% S&P 500 -27.72, -2.04% NASDAQ Comp. -61.46, -2.61% Russell 2000 -19.26, -2.72% We have been alerting you of both the short term support within the intermediate term sideways trend and to be aware of earnings season and its potential impact on the market. All it took was Dow bellweather GE to miss earnings estimates and lower second quarter and full year guidance for the market to roll over and and break short term support on Friday. Hmm, if there was any doubt about the significance of these factors before Friday, it should be perfectly clear now. And to think this is just the beginning of earnings season that gets into full swing next week. All four indices broke below the S1 level of last Tuesday's large white candle and the Nasdaq Composite and the Russell 2000 also fell below their S2/S3 levels. DIA, SPY, QQQQ and IWM presented bearish trading opportunities as the indices broke below their S1 support levels. Intriguingly, with more than a 2% drop in all four broad indices, all four fell to their 30 DMA and failed to break and close below. Candidly we can't remember the last time that occured on the same day. We don't know there is anything technically significant about that per se, but it is an intersting occurence. Friday's Action Moving Higher FAST moved higher on a strong earnings announcement BBBY, CF, CLF, MON, POT, UAUA, XLU Moving Down AAPL support bounce failed and moved lower PCLN ascending triangle failed and moved lower Pullbacks BIDU, CELG, CHL, DE, DECK, EBAY, EXPE. FSLR, ISRG, JASO, MEE, MOS, MTL, NKE, RIMM, SCHN, SLB, STLD, STRA, X Brokerage stocks GS, LEH, MER, MS all moved lower FWLT, IBM broke below 30 DMA Wednesday's Downtrending Stock Post AMLN, AMZN, GRMN, NTAP, SBUX, FXI, LFC, PTR all moved lower Only UAUA on this list moved higher on Friday Intermediate Term Market Trend: Neutral Short Term Market Trend: Down